A Comparative Analysis of Environmental Policy Integration
The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development
Edited by Alessandra Goria, Alessandra Sgobbi and Ingmar von Homeyer
Chapter 1: Insights from Environmental Economics in the Integration of Environmental Policy into Decision-Making
Frank J. Convery 1.1 INTRODUCTION There are two separate but related ways of addressing how integration of environment into the policy process can be addressed. The first is to focus on process – how environment and developmental policies are linked and coordinated, often with an emphasis on legal and regulatory frameworks and institutions, and the linking of sectoral development and environment. This strand is implicit in the OECD’s sense of environmental policy integration, which defines it as: Early coordination between sector and environmental objectives in order to find synergy between the two or to set priorities for the environment where necessary. The second is more explicitly normative and ‘economic’ in flavour, with an emphasis on costs, benefits and price signals, which I define as follows: Environmental policy integration is where the costs and benefits of environmental stewardship in the development process are recognised, and acted upon in the sense that the policy process ensures that ‘environment’ is given appropriate consideration in the articulation of choices, in the decisions made, and in their implementation, ideally with the use of a price signal that reflects the scarcity of the environmental endowment in question. The World Bank attempted this sort of integration of environment and development in its lending and sectoral policies, described in Warford (1987) and Pearce and Warford (1993). Sgobbi et al. (2007) make the point that with a process and institutional focus: It is very difficult to define criteria for assessing whether environmental policy 1 2 Governance for the Environment integration...
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